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Your World With Neil Cavuto

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America 8, Us 7, Medicare 3, United States 3, Washington 3, Casey Anthony 2, Lg Revolution 2, Verizon 2, Lindsay Lohan 2, Yemen 2, New York 2, Singapore 2, Thomas Jefferson 1, Paul Ryan 1, Reagans 1, Coburn 1, Goldman Sachs 1, Moorhead 1, Neil Cavuto 1, Perry 1,
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  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    July 1, 2011
    4:00 - 5:00pm EDT  

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trace is here later with the fox report at 7:00 p.m. and log on to "shep," and now neil cavuto up next in "your world." >>neil: this is live shot of the white house. the president is about to leave. now you are looking at the united states scan toll. most of congress has already left. so, on this do or die july 4th weekend they said they would put the pedal to the metal. and they does. right out of town. remember this, 48 hours ago. >> by the end of the week we have not seen substantial progress members of congress need to understand we are going to start having to cancel things. and stay here until we get it done.
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they are in one week. out one week. and then they are saying obama has to step in. you need to be here. i've been here. >> well it turns out not always and he is setting up camp, all right, but at scamp david. and remember when harry reid said this? >> we have to do something that is too important not to be here and try to resolve what needs to be done. we do not have time to waste. >>neil: well not to lose too much, congress will not be back until at least tuesday, incredible, something less than my diet, washington's will power. david, what do you think of that? they said they would be working. >> do you really expect anything else? come on.
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>>neil: normally i stick to a diet 72 hours. and then i collapse. >>guest: unless i put a big fat canoli in front of you. >>neil: the idea is we have to get jobs going, and you talk about what is making your life difficult, regulation and price of oil and gasoline which prohibits people from buying bakery products but this must not be encouraging. >> it is more lip service to the public. it is nothing but a constant game of, what can we say to cover our butts? there is no fact. it is all fiction. these people can suddenly say if we don't get this done we will go into the worst depression we have ever seen. but, see you later because i have to have hotdogs and beer this weekend. i got a bakery to run and when
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your producer so-called, in st. louis the heat index is 105 and i'm on the roof doing tar flashing and thinking, well, are they stretched back on the first-class seat on the way home or maybe riding in the personal airport that the president wants to tax everybody on, on their way home for the weekend because they needed to get there quick. it's more lip service. it shows, truly shows, truly how much our bigs get it and how much they care. i don't know how else to look at it. >>neil: if they worked this weekend to try to put together a budget deal which is what the argument was to be in town, what is the number one thing a guy like you, a very successful small business person, what would you like to see them do? >> get something done. >>neil: like what? >> come to some kind of middle ground.
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right now if they were there i don't know they will get anything done. you have two parties, one wants to cut and the other wants to spend. we are at such an impasse i don't where it will go. what can be done? when the president was elected he said elections have consequences. he forgot what he said. elections have consequences. it is time for the conservatives to put cuts in. mr. president, elections have consequences. listen to your words. >>neil: well put, date. >>guest: to our troops, thank you for everything you do, and have a great local day. >>neil: even democrats are embarrassed with the president taking off and i will speak with one tonight at 6:00 p.m., and if it is really contentious i don't smile, and the second half of
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the year is kicking off and stocks are kicking up. improvement in manufacturing behind the rally. the dow jones industrial average up 650 points and the main street shows consumers are flipping out over jobs and the lack of them. and lockheed martin cuts 1,500 on the chopping block today. and normally you would see all these folks tomorrow on is cost of freedom but they will not be on because of the casey anthony murder trial and some of you may not be interested in that, so, they are going online to sound off from the market, to the economy, to wall street, to show how jobs are created. so check it out at www.
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www.foxnews.com/costoffreedom and are you worried, jonathan, doing opposite of what they say? >> i worry they will do more of what they have been doing. such as creating more jobs. we still have unemployment rate of almost 10 percent despite the efforts. stocks are up. i am happy. they are a great forward looking indicator but the story was the collapse of the bond market. traders and investors and business people are anticipating higher inflation so i don't think we will see meaningful job growth in three or six months. >>neil: we are used to see the low interest rate when they are less than this low we still say they are low. are you worried? >> not about inflation and not
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about interest rates. the food price and the gas prices get the headlines but inflation is flat at 3.5 percent. i'm bullish from that aspect and on jobs because it has bottomed out. housing is seeing the "seeds of growth," "sprouts of growth." yes, the green shoots. there is positive stuff. consumer sentiment can turn around and put money back into sectors that hurt like in the leisure, it would be good. i thought we would be in better shape than we are. i am concerned because we have seen this before. how many times did it look like
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we were coming out of the recession, not just g.d.p. growth but significant, significant job growth. there are lots of drags on creating jobs and one is the uncertainty. we have a president who despite the fact we have 9.2 percent unemployment, he talks down the economy all the time and talks about raising taxes and cap and trade. name it. this is a man who is talking down the economy. it is bizarre situation. i have never seen a president talk down the economy. i don't know if he knows he is doing it but when you talk to the small business owners not the guy that does your lawn, but the guy that has a plant with between 1,000 or 2,000 employees, this is preventing these people from hiring, and it is forcing us, to hire over
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there. goldman sachs is hiring people in singapore. >>neil: but the white house is saying this improvement in the market while not connecting the dot is part of an improving trend. the stimulus created better than 3.6 million jobs and the proof is in the latest economics. >> but they turn to the s.p.r., and, clearly voters were not impressed. >>neil: talking about tapping the i'm reserve. >> yes. i am not surprised the senators left, like the bank executive who would not meet with the senators. presbyterian -- president reagan talked to us, and this president is talking down the economy and geithner testified before the
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small business administration committee and talking about how he needs to tax more small businesses to support education and when businesses hear that, and no one feels like they want to rally around the president. she moorhead than heart versus reagan was more heart than head. they wanted to rally. >> but depending on what they talk about it is what they do. chairman's point is look at the unemployment rate in singapore it is under 2 percent, hard to find, hard to find--. >> you are concurring with what i say. people in business are saying, is this administration going to have to back track and style back on obamacare? will the congress de-fund the obamacare? >> it is worse. people in business believe this administration is at war with them. and the closest, the people that are closest to the obama administration are waking up to
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this. they were not at the fat cat fundraiser. >> but that could change. it can get pragmatic and the market moves forward and they and secure the large bonuses, bygones or bygones, are they not? >> i think so for one important reason. the president has been a downer on the economy and a lot of other things but there is one difference. we don't have a ronald reagan anymore. but we new have multiple ronald reagans. now the presidential elections are heating up people like bachmann and pawlenty and maybe perry, starting to take shots, direct shots, at the president. that is giving people hope that, you are right, maybe this guy is a one-term president and maybe it will not turn around. >>neil: i don't think it is red or blue.
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most of these guys are driven by how they can make money. what if the market moves forward and they say we like the government then, we are profiting, we did well with bill clinton under that and they are moving past the election. >> what i hear is major discontent with the administration's policy and i will say this, wall street--. >>neil: didn't they san everyone to that dinner? they raised a lot of money. >>guest: there were a lot of hedge funds. there are plenty of limousine liberals in new york. >> from 1999 to 2009 . >>neil: wait, now you are pulitzer prize winning. >> no, we see multinationals
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hiring overseas, 2.9 million created overseas. >> you don't buy the 3.6 million. >> no, they laid off just as many during the decade. >> it is a replay. >> it will happen again. the government impacts to save the foreclosures and we have seen what a great success that has been. >> destructive in the long wrong. >> and it has been a waste of money. >>neil: check it out automatic weekend long we are here for you does his face say it all? the case against strauss-kahn is collapsing. will he sue?
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>>neil: he is unavailable to skein a smile as the prosecution's rape case is falling apart. strauss-kahn is a freeman released amid growing doubts, a woman who admitted to lying about a last things including during the day of the rape. there are a lot of questions raised. and the former bigwig sue? and now our legal eagles. >> very unlikely. he can sue the prosecution but
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they have immunity unless they acted in bad faith. recall the duke lacrosse case and he lost the bar card. they interviewed the woman, they looked into her back ground, obviously not enough, and they went forward to the grand jury with the charges and when this information came out, they did not it is open it in the duke lacrosse, he held back the information, they went to the against, told them what they had and now, today, said, you are free to go. again, they and not get him on that. you can sue the maid. but the interesting question, if there is a conspiracy and he has been alleging, a political conspiracy that women were involved this could be against all the coconspirators. >>neil: the case has not been dropped, he is just free on bond, not free of any of the problems that could still delay
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him. >> well, that is.i -- we have to make sure the prosecution is not withholding evidence like in the rape case, the duke rape case but the charges have not been dropped. so, the prosecution has a fine line right now, they want to do whatever they can to make this case look fair but, at the same time, they are also still investigating and the charges have not been dropped. they added two additional prosecutors, a week or so ago so they are making sure they cross all of the t's and dot the i's. maybe she was not being 100 percent honest in the grand jury but that does not mean there is not a rape case so we have to wait to see. and the other thing, he should demand trial. if he really believes that he is innocent maybe this is the time to say i want to go to trial.
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>>neil: but why risk it? >> we don't know what happened in the hotel room and there is little forensic evidence that shows. >> but he admitted there was. >> he said it was consensual. so her word, really, is very, very important to the case. if i were him i would not be protecting for trial at all. i would wait to see what the prosecution does. they go forward or try to drop it. they asked for a misdemeanor. and he will not do that. >>neil: what if i told you we could be looking at the next president of france. i am not kidding. that is tonight on the fox business network. surfacenating how that could play out. >> another plant gets a $4.5 million rescue, and is the
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>>neil: $4.235 billion more for a solar company as the private company says they don't want anything to do with it. >> this is absolutely amazing. the president is serious about this, we are going to have this whether you want it or not and this was announced after the president went after corporate america for having jets and oil companies for having small loopholes. $4.5 billion. one company. for solar. there is nor demand for it.
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and it is more expensive than anything and it does not stop. >>neil: the government propping up enterprises that are not succeeding on their own, including another one that just folded, so, if you are not making it in the real private world we will prop you up to keep you going, i don't know if that is such a good sign. >> it is terrible sign for legitimate companies. and real financing out there, the government has pushed everyone aside and says, listen, we are the 800-pound gorilla deciding who is the winners and loser, it is not working. every publicly traded battery company in the toilet. the top ten solar companies that are publicly traded down 50 to 90 percent. it is not working but they punch our tax money interest it. >> in this is a preview of
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coming attractions it will continue the theme we have seen, right? >> i and not imagine changing. the day after the president lambasted , lamb -- lambasted corporate america for the jets, and this is just an accounting gimmick, if you buy equipment and plants, you can deduct it immediately in business. >>neil: remember when rehad the yacht luxury tax and it hurt those who were building yachts and pricey gets in connecticut. >> when you buy your yacht you cannot make an american yacht maker. you have to go overseas to makek up your yacht. we drove them out of business. and the reason the appreciation
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for corporate jets is in there to save american jet makers who could not keep up with foreign competition and another reason is they have all union workers. this helps union workers not corporate fat cats. >> amazing. charles, on his body odor gave him away and the judge will not let him go away, the latest on the nigerian stow away and virgin america's spokesman is next. verizon's done ! i've got seven left !
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>>neil: the california judge not letting the nigerian stow arpaio his way out of jail. the t.s.a. and the airline are working with the f.b.i. to figure how the so-called liar flier pulled it off. and now, the c.e.o. of virgin air. how did he pull this off? >> the security system is a series of redundancies with 1.5 million a day going through with the t.s.a. check point, and the airline check point and it looks like human error and that is
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what happens with a number of transactions you have a failure and from the virgin america side that is what appears to happen. >> but t.s.a. missed it and your guys pounced on it or him, how did that happen? how does he go down? >> i think what happened really there was a problem on the airplane in terms of the body odor and the gentleman appeared to be in the wrong seat so we checked the boarding pass, the manifest and in the under he was just a stow away, very calm, very cooperative, and he slept for the flight and we monitored him the entire type and the crew was in touch with our ground operations the entire time and never appeared to be a threat so we continued on with the flight. >>neil: what point was he discovered? mid-flight? when?
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>>guest: it was discovered because he was in the wrong seat a couple of hours into it, it is six hours, so about a third of the way through. >> it raised concerns there are redundancies with the system, but something went down in between. this man may have meant in problem and? he does not stink so much there would not have been the discovery. >>guest: there are redundancies that were in effect that worked. he went through the t.s.a. line and was screened with everyone else and he cleared that process. and the aircraft is an aircraft that is searched each morning. there are other levels of redundancy that the if undoes
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not -- that the public does not know about. this were a cple that were visible to the public, but this were others that were not so visible that were in effect so the flight was safe and the system worked. >>neil: my concern with the story is, say, he got through t.s.a., through security, showing no weapon, showing in physical harm. but he should not have been on the flight and he was a stow away clearly and i wondered about how many other people get on flights they should not be on? >>guest: well, it's impossible to tell because you dent know unless you catch them. my gut feeling it is infrequent. the system worked. the procedures worked. but one of our employees does
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not notice the warning sign that said it was a wrong boarding pass. so i would say it is infrequent but impossible to know. >> this was a close to booked flight. if it was half full people may not have made a "stink" about where you it is because people spread out anyway on those flights. >>guest: yes, that is true. when the flights are full it is easier to tell if someone is in the wrong seat but the key is the gentleman went through the security process, through the screening, the aircraft was sterile and we have well trained crews and he slept most of the flight. it is an unfortunate incident and we are dealing with this from a training perspective but
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we never felt there was a tremendous issue in flight and we would have dealt with it. >>neil: the bottom line, business has been strong for you in the face of people concerned about flying, what is going on? >>guest: if you could repeat the last part of that. >>neil: business is good for you. how is that? >>guest: well, it's good because we have a good product and we have a good price and the industry is in a very disciplined state. people are not adding flights unnecessarily. what i will say, business is good for us but we have some strategic problems getting interest airports we would like to get interest in, we recently
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got into may, after three years and the city took over a terminal working with us to get additional carriers. and if you look back to december of 2010, so, six months ago, there were only 12 low cost carrier flights in that airport. now the city has opened up a terminal there are 32 flights so what you see is virgin america and jetblue and spirit growing and we need access to the airports to lower fares and have a better service. >>neil: in the meantime, look at this. all the major airports across the country: new york, atlanta, denver, los angeles, a great rush to get out but be on guard. osama bin laden could be gone but the loyalists are alive and well especially here. and what are they looking out
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for? this is what our reporter writes about, in "on the hunt," looking for recruits here. >> just because bin laden is dead does not mean the next chapter will be easier to fight. the al qaeda has diverse filed. 9/11 was a fortune 500 company, with bin laden as the c.e.o. and now we have a series of franchises, al qaeda in yemen responsible for the last two major attacks on the united states and somalia, and homegrown component. >>neil: who are the americans who get recruited or sign up to join the terrorist organizations? >>reporter: people born and raised here and know how to use our system against us. this american in yemen, al-aliwalki, is the public face of this movement. he is on the internet.
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blogging. e-mailing. skyping. kind of like the facebook friend from hell and he uses the social networking to spread the ideology of hate and it does not scratch on with a lot of people but it is getting attention with american citizens. >>neil: with the airlines and targeting airports or the incident with the stow away how real are the threats? and how likely they be perpetrated since americans? >>reporter: the united states intelligence community is looking at if there were plots in the pipeline before his death? and will anyone step up to fill the void and will they use this as a justification to launch attacks in the united states on special holidays like july 4th and on the 10th anniversary of 9/11 and what we learned in his compound, bin laden was focused on mass transit and trying to
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hit the symbolic dates. >>neil: it scares you but i recommend you reading it because she is ahead of the curve. next, this goes out to lindsay lohan. yes, we know how worried she is about food and gas prices. but we have some news that may let you rest your weary head. stay tuned. [ male announcer ] millions of men 45 and older
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>>neil: lindsay lohan is losing sleep over food and gas prices but another blond found something to help. and the official talented blonds and this lady has been good with the price swings with the commodities. since last time we talked a lot of them have come down. i don't know if that is a
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knee-jerk phenomena, what do you think? >> we had relief with the ethanol subsidies sow -- so you will see surplus corn. and the growing season has been good. we say knee-high by the 4th of july and nothing earth shattering about the weather and the corn crop but we are early in the summer. >>neil: when we talk subsidies, the talk is to remove subsidies for ethanol and even for oil, but having said that, that is the life support for corn in the high price and it has given up is ground but it is up in excess of 50 percent year over year. >> i am a glad and doom but i have a reality check.
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i am worried about corn and cotton prices. i see a lot of inflation here, and stagflation is what we look at. a more rosy picture but the back half of the year i would worry. >>neil: a lot of folks look at this inflationary stuff across the commodities and some of the big ones have come down and this is a great unwinding going on across the commodity spectrum and maybe the inflationary bubble has been pierced here, you don't buy that? >> i don't. you will see this hitting home around back-to-school so in another month in august when we push sweaters at you, for back-to-school, the retailers that had cotton prices locked in, now they take it on the children so they will pack that pricing on to you and you take
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your kids out to get t-shirts and underwear, hold on to your wallet because it will get bad. >>neil: there is not a connection here but if you look at wall street today at 168, up, in excess 600 points and kicked off the second half of the year on a nice note. if they are worried about inflation they have a funny way to show it. >> it is 4th of july. look at volume. i love to see green on the cake, everyone does, going into the summer, and a holiday market but there is a lot of money sitting on the side lines and uncertainty. investors will hold on to cash, i think, rather than in the equities. so they will hold on. >>neil: ahead of uncle sam's birthday, this birthday: medicare is 45 today.
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my gift says the cost of the entitlements like medicare is very, very old.
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>>neil: happy birthday, medicare. 45 years young. looking worse for the wear. and for seven of ten americans not worth cutting. that is how many oppose a balanced budget amendment if it included cuts to entitlement programs like medicare. republican congresswoman says she is willing to buck the tide because the cuts have to be made. good to have you. did you pause when you see a stat like that? >>guest: it is consistent. the american people oppose the cuts that were made to medicare in order to help start obamacare, $570 billion.
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what they are saying is, get the fiscal house in order, you need a balanced budget amendment but for the trust funds which medicare and social security are trust funds, government has first right of refusal, they want to make certain to get the money back and that is what we are doing. we had the ryan plan out there where we would have our seniors and near seniors made hole in medicare and lock for a reorganized program for younger workers and those are steps that need to be taken, and people want to see action and an orderly process. >>neil: you probably right on all of the above but the record of late, as anyone who dares think of touching medicare, for whatever reasons, paul ryan practically is electrocuted and senator lieberman and coburn are facing hierarchy in their party and here you are, but do you
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worry that they start dumping on you? >>guest: the american people are ready for big ideas. they want a serious and sober discussion about this and time and again as i have sat down with my constituents, or my colleagues, they say you cannot kick the can down the road. you have to put items on the table. we want spending reduced and we have to get started. >>neil: but congress won't. they said they would work this weekend, and the senate is how, and it will cut the break short but not back in town until next week. the president is at camp david. where is that resolve? >>guest: well, what we have to do is make a commitment to get going on this. >>neil: they're not. they're not. they're not. they're not. they're not. >>guest: i great that is not right, there seems to be a pushing of it to the side.
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this is a serious issue. we have the holders our debt, the ones that will decide our children's future, the american people are saying they are open to cuts, to caps, to a balanced budget amendment, but they want to see equity and fairness. for individuals that have participated, have played by the rules and done what was right, they want to make certain they are tried fairly. and i agree with them. it is the way it needs to be done and an orderly process needs to be put in place. we need to send a message not only to the markets but to the world we will get our fiscal house in order. watching greece this week was a lesson for all of us as to what happens when you have austerity but no plan for growth. >>neil: all right, congresswoman, have a great weekend yourself. thank you. so, this 4th, go forth, but, first, listen up.
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♪ ♪ >> neil: so you want to celebrate independence day? how about we be a little less dependent. you can't be independent in a country when so many are dependent on the government, half pay no taxes a all get rebates. the rest pay a lot of taxes and get more de you have can't be independent if you depend op foreigners to keep you going and their money to keep you survivorring. you have can't be independent if you see it and refuse to address it. you can't honor the forefathers call to unshackle from chains of oppressive foreign government when you find yourself in prison by spending that's more pressive by our government. independent mind would find it troubling and do something, but we live in an increasingly dependent society hoping our leader do nothing, because it's easier to take from a
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government than try to take back our government. to what our forefathers intended and not what the successors corrupted in both party. we owe them not owing so much. nation is dependent on programs that don't help and stimulate that doesn't stimulate isn't that far from joining the great empire that don't matter. because thomas jefferson was only partly right. a government big enough to give you everything you want isn't not only big enough to take away everything you have, but every last shred of independent decency you own. we could do worse than remember the meaning of this day. take a look around. we are already having independence day. who can make it a real independence day? one hour from now on my show on fox business network, democrat scratch their heads as the president heads out of town after telling them to stay in town
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no cost of freedom on tv tomorrow on the fox news channel because of the coverage of the casey anthony case. but it is on the web. all our cost of freedom all-stars from all four business shows, well, they realize how much you hate to miss them, so they are telling you what is on their minds, gnome, including the america biggest private company teaching washington how to butt out of the economy. check it out all weekend long. foxnews.com/costoffreedom. we are always there looking out for you. quick look at how we closed up wall and broad today. not a great deal of worry of the inflationary threat. lack of activity in washington. looking past that or optimistic something better will come along. on the week, if surge of the dow. better than 6.5 in nasdaq and 5.5 in s&p. one of the best week performances we have seen i